WELLS FARGO BANK, N.A. v. AMERICAN BUILDERS AND CONTRACTORS SUPPLY CO., INC. D/B/A ABC SUPPLY CO., INC.

CourtCourt of Appeals of Georgia
DecidedOctober 11, 2022
DocketA22A0793
StatusPublished

This text of WELLS FARGO BANK, N.A. v. AMERICAN BUILDERS AND CONTRACTORS SUPPLY CO., INC. D/B/A ABC SUPPLY CO., INC. (WELLS FARGO BANK, N.A. v. AMERICAN BUILDERS AND CONTRACTORS SUPPLY CO., INC. D/B/A ABC SUPPLY CO., INC.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WELLS FARGO BANK, N.A. v. AMERICAN BUILDERS AND CONTRACTORS SUPPLY CO., INC. D/B/A ABC SUPPLY CO., INC., (Ga. Ct. App. 2022).

Opinion

FIFTH DIVISION MCFADDEN, P. J., GOBEIL and LAND, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. https://www.gaappeals.us/rules

October 11, 2022

In the Court of Appeals of Georgia A22A0793. WELLS FARGO BANK, NA v. AMERICAN BUILDERS AND CONTRACTORS SUPPLY CO., INC. d/b/a ABC SUPPLY CO., INC.

LAND, Judge.

In this garnishment action, Wells Fargo Bank, N.A. appeals the denial of its

motion to set aside a default judgment. Specifically, Wells Fargo argues that because

the Civil Practice Act (“CPA”) does not require answers to amended pleadings absent

a court order and because garnishment proceedings are governed by the CPA, Wells

Fargo was not required to file an answer to an amended garnishment summons and

the default judgment was in error. We agree and reverse.

“Absent an abuse of discretion, we will not reverse a trial court’s refusal to set

aside a default judgment.” (Citation and punctuation omitted.) Jacques v. Murray,

290 Ga. App. 334, 335 (1) (659 SE2d 643) (2008). However, the standard of review for a question of law on appeal is de novo, “during which we owe no deference to the

trial court’s ruling and apply the plain legal error standard of review.” (Punctuation

and footnote omitted.) Cosby v. Lewis, 308 Ga. App. 668, 679 (1) (708 SE2d 585)

(2011).

The relevant facts are not in dispute. The record shows that, in August 2020,

American Builders and Contractors Supply Co., Inc. d/b/a ABC Supply Co., Inc.

(“ABC”) instituted a garnishment action by filing an affidavit of garnishment and

summons of garnishment, naming Brown Rooftops, LLC, as the defendant, and Wells

Fargo as the garnishee. ABC sought recovery of $87,030.69, which included the

amount of a judgment it obtained against Brown Rooftops and court costs. Wells

Fargo timely filed an answer showing that it had $221.30 in its possession that

belonged to the defendant and submitted that amount to the court. ABC sought

disbursement of the funds.

ABC then filed an additional summons of garnishment and an amended

affidavit of garnishment against the same parties, listing a revised claim amount of

$87,529.21. The court did not issue an order requiring that Wells Fargo file another

answer, and Wells Fargo did not file an answer to the additional summons or to the

amended affidavit. ABC then filed a motion seeking the entry of a default judgment

2 against Wells Fargo due to Wells Fargo’s failure to answer the second summons of

garnishment. The trial court granted ABC’s motion and entered a default judgment

in the amount of $87,529.21 against Wells Fargo. Wells Fargo was served with the

judgment, and ABC later requested the trial court issue a writ of fieri facias.

Wells Fargo filed a motion to set aside the default judgment, arguing that it was

not required to answer the amended pleading absent a court order requiring it to do

so and that in light of this nonamendable defect, the court was required to set aside

the default judgment. After a hearing, the trial court denied Wells Fargo’s motion,

finding that Wells Fargo had failed to file an answer to the additional summons and

that Wells Fargo had failed to move to modify the default judgment after it was

properly served. Wells Fargo’s application for discretionary appeal was granted.

In its sole enumeration of error, Wells Fargo argues that the trial court erred by

entering a default judgment and denying its motion to set it aside. Specifically, Wells

Fargo argues that because garnishment proceedings are governed by the CPA, which

does not require answers to amended pleadings absent a court order, Wells Fargo’s

failure to file an amended answer did not put it in default. We agree.

OCGA § 9-11-60 (d) (3) permits a judgment to be set aside based upon a

“nonamendable defect which appears upon the face of the record or pleadings.” “In

3 cases involving a default judgment, this type of defect arises where the record shows

on its face that the default was entered on an improper basis.” (Punctuation and

footnote omitted.) Hiner Transp., Inc. v. Jeter, 293 Ga. App. 704, 705 (667 SE2d

919) (2008). Wells Fargo argues that the trial court should have granted its motion

to set aside the default judgment pursuant to OCGA § 9-11-60 (d) (3) because the

record shows on its face that there was a nonamendable defect.

“The fundamental rules of statutory construction . . . require us to construe the

statute according to its terms, to give words their plain and ordinary meaning, and to

avoid a construction that makes some language mere surplusage. At the same time,

we must seek to effectuate the intent of the legislature.” (Citation omitted.) Truist

Bank v. Stark, 359 Ga. App. 116, 118 (1) (854 SE2d 784) (2021). Georgia’s

garnishment statutes “are in derogation of the common law and, thus, must be strictly

construed.” (Punctuation and footnote omitted.) Principal Lien Servs., LLC v. Nah

Corp., 346 Ga. App. 277, 279 (1) (814 SE2d 4) (2018). Unless otherwise provided

by the garnishment statute, OCGA § 18-4-1 et seq., garnishment proceedings are

governed by the pleading and practice provisions of the CPA. OCGA § 18-4-2; see

also TBF Fin., LLC v. Houston, 298 Ga. App. 657, 658 (680 SE2d 662) (2009).

4 “The affidavit filed in a garnishment action is a pleading and can be amended

as provided under both the Civil Practice Act and [OCGA § 18-4-3,] which provide[]

for amendment at any time before judgment is entered thereon.” Horizon Credit Corp.

v. Lanier Bank & Tr. Co., 220 Ga. App. 362, 363 (1) (469 SE2d 452) (1996). See also

St. Paul Reinsurance Co. v. Ross, 276 Ga. App. 135, 144 (2) (622 SE2d 374) (2005)

(under the CPA, appellees waived claim for interest accruing on underlying consent

judgment where they failed to amend their garnishment affidavit and put garnishee

on notice of their claim).

Under the CPA, “[a] party may plead or move in response to an amended

pleading and, when required by an order of the court, shall plead within 15 days after

service of the amended pleading, unless the court otherwise orders.” OCGA § 9-11-

15 (a) (emphasis supplied). “A summons issued by the clerk of court . . . is not an

order of court for the purpose of requiring an answer to an amended complaint[.]”

Shields v. Gish, 280 Ga. 556, 558 (2) (629 SE2d 244) (2006). Thus, the CPA requires

an answer to an amended pleading only when affirmatively ordered by the trial court,

see SiteOne Landscaping Supply, LLC v. Stewart, 363 Ga. App. 855, 859 n.13 (2)

(872 SE2d 915) (2022) (collecting cases), and the effect of a failure to respond when

no response is required is a denial or avoidance of the allegations in the amended

5 pleading. Id. at 860 (2).

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TBF FINANCIAL, LLC v. Houston
680 S.E.2d 662 (Court of Appeals of Georgia, 2009)
Shields v. Gish
629 S.E.2d 244 (Supreme Court of Georgia, 2006)
Ford v. State
516 S.E.2d 778 (Supreme Court of Georgia, 1999)
Horizon Credit Corp. v. Lanier Bank & Trust Co.
469 S.E.2d 452 (Court of Appeals of Georgia, 1996)
Jacques v. Murray
659 S.E.2d 643 (Court of Appeals of Georgia, 2008)
Hiner Transport, Inc. v. Jeter
667 S.E.2d 919 (Court of Appeals of Georgia, 2008)
ST. PAUL REINSURANCE CO., LTD. v. Ross
622 S.E.2d 374 (Court of Appeals of Georgia, 2005)
Cosby v. Lewis
708 S.E.2d 585 (Court of Appeals of Georgia, 2011)
National City Mortgage, Inc. v. Point Center Financial, Inc.
703 S.E.2d 113 (Court of Appeals of Georgia, 2010)
Sondi Moore-Waters v. Met-Test, LLC.
782 S.E.2d 848 (Court of Appeals of Georgia, 2016)
Altamaha Riverkeepers, Inc v. Rayonier Performance Fibers, LLC
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Principal Lien Servs., LLC v. NAH Corp.
814 S.E.2d 4 (Court of Appeals of Georgia, 2018)

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WELLS FARGO BANK, N.A. v. AMERICAN BUILDERS AND CONTRACTORS SUPPLY CO., INC. D/B/A ABC SUPPLY CO., INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-fargo-bank-na-v-american-builders-and-contractors-supply-co-gactapp-2022.